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illuminati seed's avatar

A FED pause doesn't fix the problem...it only extends it. The Ten Year Yield is just pulling back temporarily to make it appear that the FED has the markets back...and the markets today believed Powell was bluffing on his hawkish stance. Yes, a rate cut is coming, but in my opinion, they are letting yields rise out of control until something breaks...then they can use that excuse to cut rates. The relief may last throughout next week, but by end of this month, the Ten Year Yield will be well above 5% and there will be calls to cut rates, as the liquidity crisis expands rapidly.

The only way the FED can cut rates is if something drastic happens that allows them to do so, and something that the market believes it will benefit from. Emergency Rate Cuts for no reason are out of the question, but liquidity drying up faster than it has been with the Ten Year Yield over 5% will break another bank and bring the question of rate cuts back into the spotlight.

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Brian b.'s avatar

Interesting jonny bravo on his channel said his charts predicted one last hurrah and time to get out before the ship sinks to big lows. Looks like he was right

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